TS: Futures Lifted by Greece Bailout Optimism: Morning Call
U.S. stocks are attempting to end May positive with futures up 1% in early trading, as European leaders agree more aid is needed for Greece. They also ruled out a "total restructuring" of Greek debt, calming concerns of investors that the nation would default.
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Market Activity
Goldman Sachs Group Inc.| GS
UP
SPDR Gold| GLD
UP
Potash Corporation of Saskatchewan Inc.| POT
UP
Reports of additional aid for Greece also pushed international markets higher with the MSCI Asia Pacific Index gaining 1.4% and the Stoxx Europe 600 up as much as 1%.
The Euro currency received buying interest, sending the dollar lower and allowing most commodities to appreciate this morning. Silver continues to bounce back from a rough May, up over 1% in early trading, while gold and copper remain flat.
Crude oil reached the $102 level for the first time since May 11th; up 1.5% on news TransCanada(TRP_) closed the Keystone Pipeline that runs from Alberta, Canada to Cushing, Oklahoma where New York-traded oil is kept.
Oil stocks look to rally with crude oil, with the Oil Services HOLDRs ETF(OIH_) and Schlumberger(SLB_) up in early trading. The iShares Silver Trust ETF(SLV_) is up 1.6%, but SPDR Gold Trust ETF(GLD_) is flat. The strength in grains, has Potash(POT_) up nearly 2%, while Mosaic(MOS_) benefits from a positive mention in Barron's, suggesting the company may be a good target for sovereign wealth funds from emerging countries.
The technology stocks extend their relative outperformance over the last few weeks, with domestic tech giants Netflix(NFLX_), Apple(AAPL_) and Amazon(AMZN_) acting better technically, trying re-establishing themselves as market leaders.
Chinese technology stocks Sina(SINA_) and Baidu(BIDU_) continue to be weighed down by overall pessimism in Chinese stocks, but have also responded recently to overall emerging market strength.
The financial sector remains a drag on the economy and stock market, as housing extends it weakness into the month of June. However, bank stocks are showing signs of life as Goldman Sachs(GS_) and CIT Group(CIT_) have experienced strong rallies off May lows ahead of Friday's jobs number. Can the markets close the month strong?
Disclosures: Scott is long AAPL, POT, BAC, SINA and short SPY